View more on these topics

IFA in administration over £1.5m Arch cru bill

Willow Financial Management had previously been ordered to pay £70,000 in Arch cru compensation to two former clients.

Leicestershire-based IFA Willow Financial Management has been forced into administration after facing £1.5m in Arch cru liabilities, with former directors setting up a new firm and claims likely to fall on the Financial Services Compensation Scheme.

Willow entered discussions with administrators in July after assessing its Arch cru sales and concluding it would be exposed to significant claims from investors, according to a recent statement of administrator’s proposals.

The firm was then bought in a transfer of undertakings protection of employment arrangement by two separate firms set up by its former directors for a total of £40,000. The administrators say the pre-packaged sale ensured the majority of the firm’s staff remained employed.

The statement says Willow Financial had been ordered to pay £70,000 in Arch cru compensation to two former clients who had taken their case to the Financial Ombudsman Service. It expected to receive a “significant” number of further claims, which it did not have sufficient reserves to meet.

The administrators anticipate there will be sufficient funds to discharge preferential creditor claims in full.

The Financial Services Compensation Scheme usually ranks as an unsecured creditor. The administrators say a dividend of approximately 0.7 pence in the pound will be paid to unsecured creditors – but that this is dependent upon future realisations in respect of trail receipts and the level of claims.

Willow’s total liability to creditors stands at £1.59m. 

Willow directors were unavailable for comment as Money Marketing went to press. 



Fidelity offers ‘access’ service in exchange for lowest share classes

Fidelity Worldwide Investments has launched an “access” programme aimed at offering fund managers enhanced marketing and events services in return for making the lowest share classes available on its FundsNetwork platform. Fidelity outlined the plans to around 80 fund managers yesterday. The programme will offer participating fund managers enhanced marketing and events services and direct access to […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm